Date of Adoption - valleyair.org · 2. 35 Projects on Contiguous or Adjacent ... using the most...

DRAFT August 29, 2017

9510 - 1 Draft Amendments to Rule 9510

RULE 9510 INDIRECT SOURCE REVIEW (ISR) (Adopted December 15, 2005; Amended

[Date of Adoption], but not in effect until [insert date 90 days after rule adoption])

1.0 Purpose

The purposes of this rule are to:

1.1 Fulfill the District’s emission reduction commitments in the PM10 and Ozone

Attainment Plans.

1.2 Achieve emission reductions from the construction and use of development projects

through design features and on-site measures.

1.3 Provide a mechanism for reducing emissions from the construction of and use of

development projects through off-site measures.

2.0 Applicability

2.1 Effective on and after March 1, 2006, Tthis rule shall apply to any applicant that

seeks to gain a final discretionary approval for a development project, or any portion

thereof, which upon full build-out will include any one of the following:

2.1.1 50 residential units;

2.1.2 2,000 square feet of commercial space;

2.1.3 25,000 square feet of light industrial space;

2.1.4 100,000 square feet of heavy industrial space;

2.1.5 20,000 square feet of medical office space;

2.1.6 39,000 square feet of general office space;

2.1.7 9,000 square feet of educational space;

2.1.8 10,000 square feet of government space;

2.1.9 20,000 square feet of recreational space; or

2.1.10 9,000 square feet of space not identified above.

2.2 Except as specified in Section 2.3, this rule shall apply to any applicant that seeks

to gain approval from a public agency for a large development project, which

upon full build-out will include any one of the following:

2.2.1 250 residential units;



2.2.2 10,000 square feet of commercial space;

2.2.3 125,000 square feet of light industrial space;

2.2.4 500,000 square feet of heavy industrial space;

2.2.5 100,000 square feet of medical office space;

2.2.6 195,000 square feet of general office space;

2.2.7 45,000 square feet of educational space;

2.2.8 50,000 square feet of government space;

2.2.9 100,000 square feet of recreational space; or

2.2.10 45,000 square feet of space not identified above.

2.3 Section 2.2 shall not apply if any of the following are true:

2.3.1 Final discretionary approval for the large development project has been

received prior to March 1, 2006; or

2.3.2 The large development project requires or required a discretionary approval

and is subject to the rule under Section 2.1; or

2.3.3 Prior to [insert date 90 days after rule adoption], the applicant received

project-level building permits, a conditional use permit, or similar approvals

for the particular large development project; or

2.3.4 The large development project qualifies as a Grandfathered Large

Development Project.

2.24 Effective on and after March 1, 2006, Tthis rule shall apply to any

transportation or transit development project where construction exhaust emissions

equal or exceed two (2.0) tons of NOx or two (2.0) tons of PM10.

2. 35 Projects on Contiguous or Adjacent Property

235.1 Residential projects with contiguous or adjacent property under common

ownership of a single entity in whole or in part, that is designated and

zoned for the same development density and land use, regardless of the

number of tract maps, and has the capability to accommodate more than

fifty (50) residential units when determining applicability of the rule under

Section 2.1, or more than 250 residential units when determining applicability

of the rule under Section 2.2, are subject to this rule.



235.2 Nonresidential projects with contiguous or adjacent property under common

ownership of a single entity in whole or in part, that is designated and zoned

for the same development density and land use, and has the capability to

accommodate development projects emitting more than two (2.0) tons per

year of operational NOx or PM10 when determining applicability of the

rule under Section 2.1, or more than ten (10.0) tons per year of operational

NOx or PM10 when determining applicability of the rule under Section 2.2,

are subject to this rule. Single parcels where the individual building pads are

to be developed in phases must base emissions on the potential development

of all pads when determining the applicability of this rule.

3.0 Definitions

3.1 APCO: as defined in Rule 1020 (Definitions).

3.2 APCO-Approved Model: any computer model that estimates construction, area

source and/or operational emissions of NOx and PM10 from potential land uses,

using the most recent approved version of relevant ARB emissions models and

emission factors, and has been approved by the APCO and EPA.

3.3 Air Impact Assessment (AIA): the calculation of emissions generated by the project

and the emission reductions required by the provisions set forth in this rule. The AIA

must be based solely on the information provided to the APCO in the AIA

application, and must include all information listed in Section 5.6, et seq.

3.4 Air Impact Assessment (AIA) Application: the aggregate of documentation

supporting the development of an AIA. This includes, but is not limited to, the

information listed in Section 5.0, et seq.

3.5 Air Resources Board (ARB or CARB): as defined in Rule 1020 (Definitions).

3.6 Applicant: any person or entity that undertakes a development project.

3.7 Area Source: any multiple non-mobile emissions sources such as water heaters,

gas furnaces, fireplaces, wood stoves, landscape equipment, architectural coatings,

consumer product, etc., that are individually small but can be significant when

combined in large numbers.

3.8 Baseline Emissions: the unmitigated NOx or PM10 emissions as calculated by the

APCO-approved model.

3.9 Construction: any excavation, grading, demolition, vehicle travel on paved or

unpaved surfaces, or vehicle exhaust that occurs for the sole purpose of building a

development project.

3.10 Construction Baseline: the sum of baseline NOx or exhaust PM10 for the duration



of construction activities for a project, or any phase thereof, in total tons.

3.11 Construction Emissions: any NOx or exhaust PM10 emissions resulting from the

use of internal combustion engines related to construction activity, which is under

the control of the applicant through either ownership, rental, lease agreements, or

contract.

3.12 Contiguous or Adjacent Property: a property consisting of two or more parcels of

land with a common point or boundary, or separated solely by a public roadway or

other public right-of-way.

3.13 Development Project: any project, or portion thereof, that is subject to an

discretionary approval by a public agency, and will ultimately result in:

- the construction of a new building, facility, or structure; or

- the reconstruction of a building, facility, or structure for the purpose of

increasing capacity or activity.

3.14 Discretionary Approval: a decision by a public agency that requires the exercise of

judgment or deliberation when the public agency or body decides to approve or

disapprove a particular development project, as distinguished from situations where

the public agency merely has to determine whether there has been conformity with

applicable statutes, ordinances, or regulations.

3.15 District: the San Joaquin Valley Unified Air Pollution Control District as defined

in Rule 1020 (Definitions).

3.16 Emission Reduction Measure: an activity taken or conditions incorporated in a

project to avoid, minimize, reduce, eliminate, or compensate emissions estimated

to occur from new development projects.

3.16.1 On-Site Emission Reduction Measure: any feature activity, device, or control

technology of a project, which is incorporated into the design of that project

or through other means, which will avoid, minimize, reduce or eliminate the

project’s emissions. All on-site emission reductions achieved beyond

District or state requirements shall count towards the mitigated baseline.

City, County and other public agency requirements may also be credited

towards emission reductions.

3.16.2 Off-Site Emission Reduction Measure: any feature, activity, or emission

reduction project used, undertaken, or funded to compensate for a project’s

emission that is not part of the development project.

3.17 Grandfathered Large Development Project: a large development project that meets

the following to the satisfaction of the APCO:

3.17.1 The large development project must be identified by the applicant and be a

particular and defined large development project meeting at least one of the



land use categories in Section 2.2; and

3.17.2 The applicant provides written confirmation from the public agency

responsible for project-level building permits, conditional use permits, or

similar approvals, that the large development project identified under Section

3.17.1 has received a land-use entitlement and requires no discretionary

approval prior to starting construction; and

3.17.3 Prior to [insert date 90 days after rule adoption], and in reliance upon the

land use entitlement, the applicant has entered into binding agreements or

contractual obligations for the large development project identified under

Section 3.17.1, which cannot be canceled or modified without substantial loss

to the applicant, for designing, developing, or constructing the large

development project.

3.178 Indirect Source: any facility, building, structure, or installation, or combination

thereof, which attracts or generates mobile source activity that results in emissions of

any pollutant, or precursor thereof, for which there is a state ambient standard, as

specified in Section 1.1.

3.189 Land Use: any facility, building, structure, installation, activity, or combination

thereof, and the purpose, for which it is arranged, designed, intended, constructed,

erected, moved, altered or enlarged on, or for which it is or may be occupied or

maintained. Land use can be identified in the following categories:

3.189.1 Commercial: any facility, building, structure, installation, activity or

combination thereof, that offers goods and services for sale. This can

include but is not limited to wholesale and retail stores, food establishments,

hotels or motels, and movie theatres.

3.189.2 Educational: any facility, building, structure, installation, activity or

combination thereof, whose purpose is to develop knowledge, skill, and

character. This can include but is not limited to: schools, day care

centers, libraries, and churches.

3.189.3 General Office: any facility, building, structure, installation, activity or

combination thereof, where the affairs of a non-medical business are

conducted.

3.189.4 Governmental: any facility, building, structure, installation, activity or

combination thereof, where the affairs of an entity that exercises authority

over a country, or any subdivision thereof, are carried on.

3.189.5 Industrial: any facility, building, structure, installation, activity or

combination thereof that creates, collects, extracts, packages, modifies,

and/or distributes goods.



3.189.5.1 Light Industrial: U usually employs fewer than 500 persons,

with an emphasis on activities other than manufacturing and

typically have minimal office space. Typical light industrial

activities include: print plants, material testing labs, and

assemblers of data processing equipment. Light Industrial

tends to be free-standing.

3.189.5.2 Heavy Industrial: Aalso categorized as manufacturing

facilities. Heavy Industrial usually has a high number of

employees per industrial plant.

3.189.6 Medical Office: any facility, building, structure, installation, activity or

combination thereof, where the affairs of a business related to the science

and art of diagnosing, treating, and preventing diseases are carried on.

3.189.7 Recreational: any facility, building, s t ruc tu re , ins ta l la t ion , ac t iv i t y

or combination thereof, where individuals may relax or refresh the body or

the mind. This can include but is not limited to: parks, fitness clubs, and golf

courses.

3.189.8 Residential: any facility, building, structure, installation, activity or

combination thereof, which provides a living space for an individual or

group of individuals.

3.1920 Mitigation: synonym of on-site emission reduction measure. For the purposes of

this rule, mitigation is all on-site emission reductions achieved beyond District or

state requirements. City, County and other public agency requirements may be

counted as mitigation, and credited towards emission reductions for the mitigated

baseline.

3.201 Mitigated Baseline: the NOx or PM10 emission generated by a project after on-site

emission reduction measures have been applied.

3.212 Mobile Emissions: the NOx or PM10 emissions generated by motorized vehicles.

3.223 Monitoring and Reporting Schedule (MRS): a form listing on-site emission

reduction measures committed to by the applicant that are not enforced by another

public agency along with the implementation schedule and enforcement mechanism

for each measure. The Construction Equipment Schedule constitutes a MRS for the

construction phase of a development project. The format of the MRS shall be

provided by the District. The format of the MRS shall be provided by the District.

3.234 NOx: any oxides of nitrogen.

3.245 Off-Site Emission Reduction Fee (Off-Site Fee): a fee to be paid by the applicant

to the District for any emission reductions required by the rule that are not achieved

through on-site emission reduction measures. Off-Site Fees shall only apply to off-



site emission reductions required, and shall only be used for funding off-site

emission reduction projects.

3.256 Off-Site Emission Reduction Fee Deferral Schedule (FDS): a payment schedule

requested by the applicant and approved by the District for Off-Site Emission

Reduction Fees that ensures contemporaneous off-site emission reductions for the

development project. Fee payment shall be made prior to the issuance of a building

permit. The District shall provide the FDS format.

3.267 On-Site Emission Reduction Checklist (On-Site Checklist): the list provided by the

District that identifies potential on-site emission reduction measures. Project

applicants must identify those measures that will be implemented and those that

will not. There is no minimum required to be selected for implementation.

3.278 Operational Baseline: the baseline NOx or PM10 emissions, including area source

and mobile emissions, calculated by the APCO-approved model, for the first year of

buildout for that project, or any phase thereof, in tons per year.

3.289 Operational Emissions: for the purposes of this rule, the combination of area and

mobile emissions associated with an indirect source.

3.2930 Phase: a defined portion on a map, or stage of a development project.

3.301 PM10 (or PM-10): as defined in Rule 1020 (Definitions).

3.312 Public Agency: any federal, state, local, or special agency that exercises discretionary

powers on development activities within the San Joaquin Valley Air Basin.

3.323 San Joaquin Valley Air Basin (SJVAB): as defined in Rule 1020 (Definitions).

3.334 Transit Development Project: any project solely intended to create a passenger

transportation service, local, metropolitan or regional in scope, that is available to any

person who pays a prescribed fare. Examples of transit development projects include:

Ttransportation by bus, rail, or other conveyance, either publicly or privately owned,

which is provided to the public or specialty service on a regular or continuing basis.

Also known as “mass transit,” “mass transportation,” or “public transportation.”

3.345 Transportation Development Projects: any project solely intended whose sole

purpose is to create a new paved surface that is used for the transportation of

motor vehicles, or any structural support thereof. Examples of transportation

development projects include: streets, highways and any related ramps, freeways

and any related ramps, and bridges. This does not include development projects

where traffic surfaces are a portion of the project, but not the main land-use.

3.35 URBEMIS: a computer model that is owned and modified by the local air

pollution control districts and air quality management districts in the State of

California. URBEMIS e s t i m a t e s c o n s t r u c t i o n , a r e a s o u r c e a n d



o p e r a t i o n a l emissions of NOx and PM10 from potential land uses, using the

most recent approved version of relevant ARB emissions models and emission

factors and/or District-specific emission factors; and estimates emissions reductions.

The model has the capacity for changes to defaults when new or project specific

information is known.

3.36 Vehicle Trip: a trip by a single vehicle regardless of the number of persons in

the vehicle, which is one way starting at one point and ending at another. A

‘round trip’ is counted as two separate trips.

4.0 Exemptions

4.1 Transportation development projects shall be exempt from the requirements in

Sections 6.2 and 7.1.2.

4.2 Transit development projects shall be exempt from the requirements in Sections 6.2

and 7.1.2.

4.3 Development projects that have a mitigated baseline below two (2.0) tons per year

of NOx and two (2.0) tons per year of PM10 shall be exempt from the requirements

in Sections 6.0 and 7.0.

4.4 The following shall be exempt from the requirements of this rule:

4.4.1 Reconstruction of any development project that is damaged or destroyed,

or is retrofitted solely for seismic safety, and is rebuilt to essentially the same

use and intensity.

4.4.2 Transportation development Pprojects that consist solely of:

4.4.2.1 A modification of existing roads subject to District Rule 8061 that

is not intended to increase single occupancy vehicle capacity, or,

4.4.2.2 Transportation control measures included in a District air quality

attainment plan.

4.4.3 A development project on a facility whose primary functions are subject to

Rule 2201 (New and Modified Stationary Source Review Rule) or Rule

2010 (Permits Required), including but not limited to the following

industries:

4.4.3.1 Aggregate Mining or Processing;

4.4.3.2 Almond Hulling, Canning Operations, Food Manufacturing, Grain

Processing and Storage, Vegetable Oil Manufacturing, and

Wineries;



4.4.3.3 Animal Food Manufacturing;

4.4.3.4 Confined Animal Facilities;

4.4.3.5 Coatings and Graphic Arts;

4.4.3.6 Cotton Ginning Facilities;

4.4.3.7 Energy Production Plants;

4.4.3.8 Ethanol Manufacturing;

4.4.3.9 Gas Processing and Production, Oil Exploration, Production,

Processing, and Refining;

4.4.3.10 Glass Plants;

4.4.3.11 Solid Waste Landfills;

4.4.3.12 Petroleum Product Transportation and Marketing Facilities.

5.0 Application Requirements

Any applicant subject to this rule shall submit an Air Impact Assessment (AIA) application

no later than applying for a final discretionary approval with the public agency. An

applicant for a project for which a discretionary approval is pending at the date of rule

effectiveness, shall also submit an AIA application by 30 days after the rule effectiveness

date. Nothing in this rule shall preclude an applicant from submitting an AIA application

prior to filing an application for a final discretionary approval with the public agency. It

is preferable for the applicant to submit an AIA application as early as possible in the

process for that final discretionary approval.

Any applicant for a large development project subject to this rule under Section 2.2 shall

submit an AIA application no later than applying for, or otherwise seeking to gain, approval

from a public agency for the project. An applicant for a large development project subject

to this rule under Section 2.2 who has applied for, or otherwise sought to gain,

approval from a public agency for the project prior to [insert date 90 days after rule

adoption], shall submit an AIA application prior to [insert date 120 days after rule

adoption].

The AIA application shall be submitted on a form provided by the District and shall

contain the following information:

5.1 Applicant name and address;

5.2 Detailed project description including, but not limited to:



5.2.1 Site Size;

5.2.2 Site Plans;

5.2.3 Proposed Project Schedule;

5.2.4 Associated Project;

5.2.5 If residential, the number and type of dwelling units;

5.2.6 If commercial, the type, square footage and loading facilities;

5.2.7 If industrial, the type, estimated employment per shift, and loading facilities;

5.2.8 Amount of off-street parking provided for non-residential projects;

5.3 On-site Emission Reduction Checklist (On-Site Checklist): The District shall

provide an On-Site Checklist that includes quantifiable on-site measures that

reduce operational NOx and/or PM10 emissions.

5.3.1 The applicant shall identify measures voluntarily selected and how those

measures will be enforced. On-Site measures must be fully enforceable through

permit conditions, development agreements, or other legally binding instrument

entered into by the applicant and the public agency; or, if the measure is not a

requirement by another public agency, by a MRS contract with the District.

Enforcement mechanisms can include:

5.3.1.1 Applicable local ordinance or section of a regulation that

requires the measure, if any,

5.3.1.2 A District approved MRS, as identified in Section 5.4 below.

5.3.2 The applicant shall also include justification for those measures not selected.

5.3.3 All selected on-site measures, regardless of enforcement mechanism, shall

count towards on-site emission reductions.

5.4 Monitoring and Reporting Schedule (MRS): The District shall provide a

standardized MRS format. The applicant shall include in the AIA application a

completed proposed MRS for on-site emission reduction measures selected that are

not subject to other public agency enforcement, and the timeline for submittal of

the construction equipment schedule. A proposed MRS shall outline how the

measures will be implemented and enforced, and will include, at minimum, the

following:

5.4.1 A list of on-site emission reduction measures included;



5.4.2 Standards for determining compliance, such as funding, record keeping,

reporting, installation, and/or contracting;

5.4.3 A reporting schedule;

5.4.4 A monitoring schedule;

5.4.5 Identification of the responsible entity for implementation;

5.4.6 Provisions for failure to comply;

5.4.7 Applicants proposing on-site emission reduction measures that require

ongoing funding, shall provide evidence in the proposed MRS of

continued funding, including, but not limited to:

5.4.7.1 Bonds; or

5.4.7.2 Community Service Districts; or

5.4.7.3 Contracts.

5.4.8 The schedule for submitting a construction equipment schedule.

5.5 Off-Site Fee Deferral Schedule (FDS): The District shall provide a standardized Fee

Deferral Schedule form. An applicant may propose a FDS with the District if the

total Off-Site Fee exceeds $50,000. The payment schedule must provide assurance

that reductions from off-site emission reduction projects can be obtained reasonably

contemporaneous with emissions increases associated with the project and shall, at

minimum, include the following:

5.5.1 Identification of the person or entity responsible for payment;

5.5.2 Billing address;

5.5.3 Total required off-site operational emissions for the development

project and any phase thereof;

5.5.4 Total required off-site construction emissions for the development

project and any phase thereof;

5.5.5 Year of build-out, and any phase thereof;

5.5.6 Any applicable milestones;

5.5.7 Off-Site Fee down payment, to be not less than $50,000;

5.5.78 Payment schedule not to exceed or go beyond the issuance of a



building permit. For development projects with multiple phases, the

payment schedule shall connect fee deadlines for off-site emission

reductions required by each phase prior to the issuance of building

permits for those phases.

5.5.89 The cost of reductions corresponding to the payment schedule;

5.5.910 Applicable project termination and delay clauses; and

5.5.1011 Provisions for failure to comply.

5.6 Air Impact Assessment (AIA): An AIA shall be produced for the project from the

project specific information identified in the AIA application. An AIA may be

produced by or for the applicant. If an AIA is not provided by the applicant, the

District shall perform the AIA during the AIA application review period. The AIA

shall meet the following requirements:

5.6.1 The analysis of the proposed project shall be conducted according to the

information provided in the application;

5.6.2 The analysis shall employ an APCO-approved model or calculator and

include detailed documentation and reasons for all changes to the default

input values;

5.6.3 If the AIA is conducted by or for the applicant, a hard copy and an

electronic copy of all model runs conducted for the project and each

phase thereof, shall be submitted;

5.6.4 The applicant shall include any other information and documentation that

supports the calculation of emissions and emissions reductions;

5.6.5 The AIA shall quantify construction and operational NOx and PM10

emissions associated with the project. This shall include the estimated

construction and operational baseline emissions, and the mitigated emissions

for each applicable pollutant for the development project, or each phase

thereof;

5.6.6 The AIA shall quantify the Off-Site Fee, if applicable.

6.0 General Mitigation Requirements

6.1 Construction Equipment Emissions

6.1.1 The exhaust emissions for construction equipment greater than fifty (50)

horsepower used or associated with the development project shall be reduced

by the following amounts from the statewide average as estimated by the

ARB:



6.1.1.1 20% of the total NOx emissions, and

6.1.1.2 45% of the total PM10 exhausts emissions.

6.1.2 An applicant may reduce construction emissions on-site by using less-

polluting construction equipment, which can be achieved by utilizing add-

on controls, cleaner fuels, or newer lower emitting equipment.

6.2 Operational Emissions

6.2.1 NOx Emissions

Applicants shall reduce 33.3%, of the project’s operational baseline NOx

emissions over a period of ten years as quantified in the approved AIA as


6.2.2 PM10 Emissions

Applicants shall reduce of 50% of the project’s operational baseline PM10

emissions over a period of ten years as quantified in the approved AIA as


6.3 The requirements listed in Sections 6.1 and 6.2 above can be met through any

combination of on-site emission reduction measures or off-site fees.

7.0 Off-site Emission Reduction Fee (Off-Site Fee) Calculations and Fee Schedules

7.1 Off-site Fee Calculations

7.1.1 Construction Activities

7.1.1.1 NOx Emissions

The applicant shall pay to the District a monetary sum

necessary to offset the required construction NOx emissions not

reduced on-site. The off-site fee shall be calculated as follows:

Where,

CN OF = Construction NOx Off-Site Fee, in dollars

i = each phase

n = last phase

iii

n

i

CNRNSEENACEOFCN

)8.0(1



NACE = Actual Estimated Equipment NOx Emissions, as

documented in the APCO approved Air Impact Assessment

application, in total tons

NSEE = Statewide Average Equipment NOx Emissions,

a s calculated by the APCO, in total tons

CNR = Cost of NOx Reductions identified in Section 7.2.1 below,

in dollars per ton. For projects with an approved FDS, the cost

of reductions shall be based on the year each payment is made. The

cost of emissions reductions, in dollars per ton, shall be based on

the applicable rate at the time the invoice is issued.

7.1.1.2 PM10 Emissions

The applicant shall pay a monetary sum necessary to offset the

required construction PM10 exhaust emissions not reduced on-

site. The off-site fee shall be calculated as follows:

Where,

CPM OF = Construction PM10 Off-Site Fee, in dollars

i = each phase

n = last phase

PMACE = Actual Estimated Equipment PM10 Emissions, as

documented in the APCO approved AIA application, in total tons

PSEE = Statewide average Equipment PM10 Emissions, as

calculated by the APCO, in total tons

CPR = Cost of PM10 Reductions identified in Section 7.2.2

below, in dollars per ton. For projects with an approved FDS, the

fees shall be based on the year each payment is made. The cost of

emissions reductions, in dollars per ton, shall be based on the

applicable rate at the time the invoice is issued.

7.1.2 Operational and Area Source Activities

7.1.2.1 NOx Emissions


iii

n

i

CPRPSEEPMACEOFCPM

)55.0(1



excess NOx emissions not reduced on-site. The off-site fee

shall be calculated as follows:

Where,

NOx OF = Operational NOx Off-Site Fee, in dollars

i = each phase

n = last phase

NEB = Estimated Baseline Emissions, of Operational NOx, as

documented in the APCO approved AIA application, in tons per

year

NAPOR = NOx Actual Percent of On-Site Reductions, as

documented in the APCO approved air impact assessment

application, as a fraction of one, calculated as (NEB-NOx

Mitigated Baseline)/NEB

CNR = Cost of NOx Reductions identified in Section 7.2.1 below,

in dollars per ton. For projects with an approved FDS, the cost

of reductions shall be based on the year each payment is made. The

cost of emissions reductions, in dollars per ton, shall be based on

the applicable rate at the time the invoice is issued.

7.1.2.2 PM10 Emissions


excess PM10 emissions not reduced on-site for a period of ten

years. The off-site fee shall be calculated as follows:

Where,

PM10 OF = Operational PM Off-Site Fee, in dollars

i = each phase

n = last phase

PEB = Estimated Baseline Emissions, of Operational PM10, as

documented in the APCO approved AIA application, in tons per

year

iiii

n

i

CNRNAPORNEBNEB

NOxOF

)5.7(3

5.7

1

ii

n

i

CPRPEBPMMBOFPM

)]10)(5.0[(101



PMMB = Mitigated Baseline Emissions, as documented in the

APCO approved AIA application, in tons per year

CPR = Cost of PM10 Reductions, identified in Section 7.2.2

below, in dollars per ton. For projects with an approved FDS,

the fees shall be based on the year each payment is made. The cost

of emissions reductions, in dollars per ton, shall be based on the

applicable rate at the time the invoice is issued.

7.2 Fee Schedules

7.2.1 The costs of NOx reductions are as follows:

Year Cost of NOxX

Reductions ($/ton)

2006 $4,650.00

2007 $7,100.00

2008 and beyond $9,350.00

7.2.2 The costs of PM10 reductions are as follows:

Year Cost of PM10

Reductions ($/ton)

2006 $2,907.00

2007 $5,594.00

2008 and beyond $9,011.00

7.3 The applicant shall pay the Off-Site Fees in full by the invoice due date or prior

to generating emissions associated with the project or any phase thereof, whichever

occurs first. within sixty (60) calendar days after the AIA application is

approved or in accordance to the schedule contained in the APCO approved FDS.

7.4 The applicant shall receive credit for any off-site emission reduction measures that

have been completed and/or paid for, prior to the adoption of this rule December

15, 2005, if the following conditions have been met:

7.4.1 The prior off-site emission reduction measures were part of an air quality

mitigation agreement with the APCO; or



7.4.2 The applicant demonstrates to the satisfaction of the APCO that the off-site

emission reduction measures result in real, enforceable, and surplus reductions

in emissions.

7.5 Refund: If a project is terminated or is cancelled, the building permit or use

permit expires, is cancelled, or is voided, no construction has taken place, and

the use has never occupied the site, the applicant is entitled to a refund of the

unexpended Off-Site fees paid less any administrative costs incurred by the APCO.

The applicant must provide a written request for the refund, with proof of the

project termination, within thirty (30) calendar days of the termination. Proof of

project termination can include a confirmation from a local agency of permit

cancellation.

7.6 The APCO may adjust the cost of reductions according to the following process:

7.6.1 An Analysis shall be performed that details:

7.6.1.1 The cost effectiveness of projects funded to date;

7.6.1.2 The rule effectiveness of achieving the required emission

reductions to date;

7.6.1.3 The availability of off-site emission reduction projects;

7.6.1.4 The cost effectiveness of those projects.

7.6.2 The APCO shall provide a draft revised cost effectiveness based on the

analysis.

7.6.3 The process shall include at least one public workshop.

8.0 Administrative Process

8.1 Completeness of the AIA application: The APCO shall determine whether the

application is complete and contains the necessary information no later than ten

(10) calendar days after receipt of the application, or after such longer time as

agreed to by both the applicant and the APCO.

8.1.1 Should the application be deemed incomplete, the APCO shall notify the

applicant in writing of the decision and shall specify the additional

information required. Resubmittal of any portion of the application begins

a new ten (10) day calendar period for the determination of completeness

by the APCO.

8.1.2 Completeness of an application or resubmitted application shall be

evaluated on the basis of the information requirements set forth in the



District Rules and Regulations as they exist on the date on which the

application or resubmitted application is received.

8.1.3 The APCO shall notify the applicant in writing that the application is deemed

complete.

8.2 Public Agency Review of the proposed project: The APCO shall forward a copy of

the AIA application, including the MRS (if applicable) to the relevant public

agencies for review. The public agencies may review and comment at any time on

the provisions of the MRS. Comments received by the APCO shall be forwarded

to the applicant. The proposed MRS may be modified, if necessary, based on the

input from the public agency. If any changes result from their comments, the

APCO shall make the appropriate changes and provide the applicant a revised Off-

Site Fee, if applicable. No section or provision within this rule requires action on

the part of the public agency.

8.3 APCO Evaluation of the AIA Application: The AIA application shall be evaluated

for content.

8.3.1 If the applicant submits an AIA, the APCO will evaluate the modeling

inputs and calculations.

8.3.2 If the applicant does not submit an AIA, the APCO will complete an AIA

from the information contained in the AIA application.

8.3.3 The APCO may, during the evaluation of the application, request

clarification, amplification, and any correction as needed, or otherwise

supplement the information submitted in the application. Any request for

such information shall not count towards the time the APCO has to provide

notice of approval or disapproval. The clock shall resume once the APCO

has received the requested information.

8.4 AIA Approval: The APCO shall notify the applicant in writing of its decision

regarding the AIA application and its contents within thirty (30) calendar days

after determination of an application as complete and provide the following in

writing to the applicant, the public agency, all interested parties as identified by the

developer, and make available to the public.

8.4.1 APCO approval determination of the AIA application;

8.4.2 The required emission reductions;

8.4.3 The amount of on-site emission reduction achieved;

8.4.4 The amount of off-site emission reduction required, if applicable;

8.4.5 The required Off-Site Fee if applicable;



8.4.6 A statement of tentative rule compliance;

8.4.7 A copy of the final MRS, if applicable; and

8.4.8 An approved FDS, if applicable.

8.5 Off-Site Fee: After the APCO approves the AIA application and its contents; the

APCO shall provide the applicant with an estimate for the projected off-site fees,

if applicable. The applicant shall pay the off-site fee within 60 days, unless a FDS

has been approved by the District in accordance with Section 7.3.

8.6 Fee Deferral Schedule: In the event that the applicant had not previously submitted

FDS in the AIA application, but desires one, the applicant shall ensure that the

proposed FDS is submitted to the APCO no later than fifteen (15) calendar days

after receipt of the AIA Approval. The District shall have fifteen (15) calendar

days to approve the FDS request.

8.7 MRS Compliance: After the APCO approves the AIA application and its contents;

the APCO shall enact the MRS contract, if applicable. The applicant is

responsible for implementation and/or maintenance of those measures identified

within the MRS. Upon completion of Monitoring and Reporting, the District

shall provide to the applicant, the public agency, and make available to the public,

an MRS Compliance letter.

8.7.1 Operational On-Site Measures: On-site emission reduction measures that

are active operational measures, such as providing a service, must be

implemented for 10 years after buildout of the project, if applicable.

8.7.2 Construction Equipment Schedule: The construction equipment schedule

shall be submitted to the District i f identified in the MRS prior to the

start of construction, but not to exceed the issuance of a grading permit, if

applicable.

8.8 In the event the applicant significantly changes the AIA application or any portion

thereof during the Administrative Process, the APCO shall re-start the evaluation

process pursuant to Section 8.3.

9.0 Changes to the Project

9.1 Changes Proposed By The Applicant

9.1.1 The applicant may substitute equivalent or more effective on-site

emission reduction measures upon written approval from the APCO.

9.1.2 Changes in the project or to the build-out schedule that increase the

emissions associated with the project shall require submission of a new



AIA application. A new AIA shall be conducted and the off-site fees

shall be recalculated in accordance with the applicable provisions of this

rule. The APCO shall notify the applicant of the new off-site fees, the

difference of which shall be payable by the due date specified on the

billing invoice.

9.1.3 If a project, or portion thereof, changes ownership, the seller shall inform

the District of the change in ownership by filing a “Change of

Developer” form with the District prior to the buyer generating emissions

associated with the project.

9.2 Changes Required By The Public Agency or Any Court Of Law

Project changes that result in an increase in the emissions shall require

submission of a new AIA application within 60 days of said changes, or prior to

the start of project construction, whichever is less. A new AIA shall be conducted

and the off-site fees shall be recalculated in accordance with the applicable

provisions of this rule.

10.0 APCO Administration of the Off-Site Fee Funds

10.1 The District shall establish and maintain separate accounts for NOx and for PM10

for funds collected under this rule. Any off-site fees collected by the District shall be

deposited into these accounts.

10.2 The District shall utilize monies from the accounts to fund quantifiable and

enforceable Off-Site projects that reduce surplus emissions of NOx and PM10 in

an expeditious manner.

10.2.1 The District shall set forth funding criteria for each category of off-site

projects that may be funded by this rule.

10.2.2 The District shall ensure that the emission reductions calculations for the

off-site projects are accurate.

10.2.3 If the off-site project involves the replacement of existing equipment, the

District shall inspect the existing equipment.

10.2.4 The District shall enter into a binding contract with the applicant of the off-

site project, which will, at minimum, require an annual report from the

applicant that includes information necessary to ensure that emissions

reductions are actually occurring.

10.2.5 The District shall conduct inspections on the off-site project to verify that

the project is installed or implemented and operating for the life of the

contract.



10.2.6 The District may substitute NOx reductions for PM10 in a 1.5 to 1 ratio.

10.3 Any interest that accrues in the off-site account(s) shall remain in the account, to

be used in accordance with Section 10.2 above.

10.4 The District shall prepare an annual report that will be available to the public

regarding the expenditure of those funds, and shall include the following:

10.4.1 Total amount of Off-Site Fees received;

10.4.2 Total monies spent;

10.4.3 Total monies remaining;

10.4.4 Any refunds distributed;

10.4.5 A list of all projects funded;

10.4.6 Total emissions reductions realized; and

10.4.7 The overall cost-effectiveness factor for the projects funded.

11.0 Effective date of this rule

The provisions of this rule shall become effective on March 1, 2006.

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